C-Cube Message Board - Msg: 1097740

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Technology Stocks : C-Cube

CUBE 36.52

+0.3%

Dec 12 3:59 PM EST

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To: John Rieman who wrote (12352)	3/31/1997 5:00:00 PM
From: DiViT	of 50808

From the Cube CFO comments page: c-cube.com CD player and a VideoCD player to drop to less than 20% by the end of 1997, effectively replacing audio CD Does this mean that they expected VCD prices to drop? ----------------------------------------------------------------------------------------------- Note: the referenced page was last updated on 11/25/96. ----------------------------------------------------------------------------------------------- VideoCD versus DVD in the Market While we expect to see substantial volumes of DVD players sold in the second half of 1997, we do not expect DVD to have a significant effect on our VideoCD business for several years. We have several reasons to be confident of VCD's continuing success. First, DVD players and titles will continue to be priced substantially higher than VideoCD players and titles, perhaps until the end of the decade. This price differential is simply a result of the greater maturity of the technology (remember, the audio CD technology on which VCD is based is over 15 years old) and the lower complexity of the electronics. In fact, we expect the differential between a basic audio CD player and a VideoCD player to drop to less than 20% by the end of 1997, effectively replacing audio CD. While the higher price of DVD players will be tolerable in Japan, the United States and Europe, we believe that DVD will continue to be too expensive for consumers in developing economies such as China, India, Russia and Eastern Europe for some time.

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